Tote the Note - Buy Here Pay Here

Published: 22nd December 2006
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Tote the Note?



Buy Here, Pay Here.



Poor Credit, Bad Credit, No Credit, No Problem.



We Tote the Note.



All of these are common signs you see at some used car dealerships and flashed across your television screen. However, do you really understand what goes behind this concept?



A Tote the Note dealership is really no different from the concept used at furniture rental companies, in that you pay for the car where you purchased it without any loan company in the middle. However, there is still a huge difference between a furniture rental company and a Tote the Note car dealership - Your Credit Report.



When you are searching for a new or used car, you will probably spend more time in the office with the car salesman and his manager trying to get your loan bought from a lending company. The way this is done is, you fill out a credit application, the car salesman, takes it to his manager who then punches your information into a computer to run a report on your credit. When they receive your credit report or credit score they will then fax this information to loan companies they use to finance the cars they sale. Now, the loan company will look over your credit report and decide if they wish to buy your loan. This means that you will by paying the loan company back the money they give the car dealership for the car that you purchase. If you do have poor credit, bad credit, no credit, or a bankruptcy on your credit report, you will more than likely be turned down for the car loan or you will get the bad news that you have to add 21% percent interest onto the price of the car. The bottom line is that you will paying about the same amount of money each month for that used car that you pay for rent or purchasing your home just because your credit is not up to par.



Furniture rental companies do the same, they look at your credit report and if your credit is not what it should be then you may not be able to rent to own their furniture either.



On the other hand, Tote the Note car dealerships do not look at your credit report. They will ask you to fill out an application, but the information they need is where you work, how much money you make, nearest relative's address and telephone number, and of course, your address. The only thing you really need to purchase a used car from a Tote the Note lot is a job.



A Tote the Note car dealership receives cars from other people that trade in their vehicle in order to purchase another one, buy them from auctions, or other individuals. In most cases, the dealership has a mechanic that will fix major problems that are found with the car; however, you will be purchasing a car without any type of warranty. This means if something goes wrong with the car the dealership will not fix it for you, you will have to pay for all repairs. This is normally called "sold as is".



The good part about buying from a Tote the Note lot is that you will not have to pay any interest. The price on the car is what you pay. The normal time to pay for the car is usually around 12 to 18 months. You will have to pay a certain amount each month until the total price of the car is paid off minus whatever down payment you may have. Some Tote the Note lots also offer "no down payment", but this will raise your monthly payment.



Buying from a Tote the Note car dealership will not affect your credit rating in anyway. These car dealerships do not report your payments to the credit bureaus, however, if you default on the loan that is not reported either. If you do not make your payments, the Tote the Note car lot will repossess your vehicle and put it back on their lot for sale.



If you have bad credit, no credit, or other problems that stop you from purchasing a car through a loan company, then a Tote the Note car dealership may be your best bet in getting a car. Remember, to check the car out and test drive it since you will be the one paying for any repairs once you sign the agreement and drive off the lot. You do not want to drive the car a couple of blocks and it die on you, because then you will have to pay for repairs and keep up with your monthly car payment.



Dennis is the owner of Mr. Car Quote which has car buying tips and a car forum.

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